subrogation

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Definitions from WordNet

Noun subrogation has 1 sense

subrogation - (law) the act of substituting of one creditor for another
--₁ is a kind of substitution, exchange, commutation

Derived form: verb subrogate₁

Definitions from the Web

Term: Subrogation

Definition: Subrogation is a legal term that refers to the process by which one party, typically an insurance company, steps into the shoes of another party in order to assume their rights, claims, or remedies. It often occurs when an insurance company compensates for damages suffered by their insured party and then pursues the responsible third party to recover the expenses.

Senses:

Legal Sense: In law, subrogation is the substitution of one party for another, allowing the substituted party to pursue legal actions or claims that the original party may have.
Insurance Sense: Subrogation involves an insurance company seeking reimbursement from another party for the costs incurred in settling a claim on behalf of their insured.

Examples of usage:

Legal Usage: After the car accident, the injured party's insurance company pursued subrogation, seeking reimbursement from the at-fault driver's insurance company.
Insurance Usage: The homeowner's insurance provider initiated subrogation proceedings against the construction company responsible for the damages caused by a faulty roof installation.
General Usage: When the company compensated its employees for the personal property damage caused by the fire at the office, it exercised its right of subrogation to recover the expenses from the negligent electrical contractor.